Chinese developers eye price hikes for new high-end projects

Hong Kong

SOME Chinese developers are planning to raise prices for new luxury projects in prime areas this year, in a rare sign of improving sentiment in a market that saw new home prices fall for the last eight months of 2014.

Luxury property sales took a hit last year as China's anti-corruption campaign discouraged conspicuous consumption, but buyers are now taking advantage of easier credit and a stock market rally to upgrade their homes.

Some developers are starting to raise prices in major cities, following the central bank's surprise November rate cut and its decision this month to lower the amounts lenders must hold as reserves as Beijing tries to revitalise an econ…